Frasers acquires 95 percent of Mysale shares, could trigger acquisition and AIM delisting

Image: MySale, Instagram After undergoing a lengthy process, Frasers Group has announced that it has acquired 95.35 percent of Mysale’s shares as its offer period for the Australian marketplace's shareholders came to a close. As of November 1, the group said it now owns or has received valid acceptances totaling over 991.5 shares, representing a percentage that will enable it to follow through with its takeover acceptance conditions. Following the announcement, Frasers once again confirmed that, on acquiring an excess of 75 percent of shares, it would explore its intention to apply to cancel the admission of Mysale shares to trade through AIM. In a regulatory filing, it further noted, upon cancellation, the liquidity and marketability of the marketplace’s shares would be significantly reduced. Frasers also said it intends to exercise its rights to acquire compulsorily the remaining capital under the same terms of its initial mandatory offer of two pence per share. Lengthy acquisition process It comes after the group, which owns the likes of Sports Direct and Flannels, began the long-winded process to acquire the retailer on August 17, when it first revealed its plan to make an offer on Mysale’s entire issued share capital. MySale had initially rejected its offer to buy a 100 percent stake in the company in September, stating to shareholders that the cash offer “undervalues the business”. It later reversed its decision, and instead recommended for its shareholders to accept the group’s offer despite initial concerns. Frasers announced that its mandatory offer had become unconditional on October 18. Acquisition hungry Frasers Group became the marketplace’s biggest shareholder in June when it bought a 28.7 percent stake in the business. On the first announcement of its plans, Frasers said a takeover would allow the group to grow its presence in Australia and the surrounding regions, and would also help its own portfolio of brands to clear their end-of-line products via Mysale’s established clearance channel. Frasers Group has made a number of acquisitions in recent months in a bid to expand its high street empire. This year alone, the group has bought British fast fashion retailers I Saw It First and Missguided, as well as value e-commerce platform Studio Retail.
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Marks & Spencer threatens to exit Oxford Street flagship

Image: Marks & Spencer The evolution of London’s Oxford Street could see a future without the iconic Marks & Spencer flagship. The retailer has threatened to exit if redevelopment plans designed by Pilbrow & Partners are rejected. The plans, which would see the demolishing of M&S’s current Art Deco building near Marble Arch, were initially approved by Westminster City Council and London Mayor Sadiq Khan in June. It was later withdrawn by then Secretary of State, Michael Gove. Others opposing the retailer's project is Save Britain's Heritage, a group founded in 1975 by architects, historians and journalists, with the aim of safeguarding the country's historic buildings. According to the collective, M&S rejected the idea of a refurbishment of the current building, thereby not in line with the preservation of Oxford street's heritage. The group said it would divert from the need to invest in the historic street in order to improve the West End's position, as a globally competitive commercial destination. Environmental impact Construction of the new complex would also have a huge impact on the environment, releasing 40,000 tons of CO2 into the air, in an area that is as much commercial as it is residential. M&S said any carbon footprint made by the demolition would eventually be offset by the new, more sustainable building. M&S argues there is "no heritage reason" why the three buildings on the site should not be demolished, as they are not listed, and do not sit within Westminster's conservation areas. "Any heritage harm will be significantly outweighed by the benefits," M&S representative Russell Harris KC said in the opening statement of the inquiry. Many Oxford Street flagships, from Debenhams to BHS to Topshop, have been shuttered in the past few years, with some officials citing the street’s current architecture as ‘failing’. A revamp of the building and store is vital to Oxford Street's future, Mr Harris said as "it has a smell, a tangible, unmistakable expression of decline". He added the retailer would "not be made to trade" in the current buildings and that it would not invest further in the site if its plans were refused. He also warned "no other retailer" would take over the site. Article source: BBC
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Revlon considers sale offers amid bankruptcy

Image: Revlon Struggling beauty giant Revlon is reportedly considering a sale offer, its bankruptcy attorneys told the US Bankruptcy Court for the Southern District of New York last week. It comes as the cosmetics company explores ways to exit from its Chapter 11 filing as quickly as possible, with it now said to be engaging with possible buyers. According to Reuters, Revlon lawyer Paul Basta told the court that the company was ready to move onto the next stage of its bankruptcy after it managed to stabilise its relationship with vendors and complete a long-term business plan. The publication said that the firm is exploring a possible sale of the company and has begun sending nondisclosure agreements to interested parties. In August, Revlon received approval for a 1.4 billion dollar bankruptcy loan to aid in its strategic organisation and improve its long-term outlook. The loan required the company and its lenders to reach a bankruptcy restructuring agreement by mid-November. However, lawyers for Revlon’s junior creditors said that the deadline would not allow enough time for stakeholders to review the new business plan. Revlon has until January 19 to formally propose a bankruptcy plan, with its junior creditors also expected to file a legal challenge on the company’s 2020 restructuring that allowed it to take on more debt while transitioning brands and assets to a subsidiary.
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Rise in living costs to cut into Christmas spending

Image: Pexels by Jill Wellington The run-up to the holiday season is well underway, with retailers predicting a lacklustre Christmas as soaring inflation digs into consumer purse strings. While the end of the year is meant to be a bonanza for retailers and brands, companies from Adidas to Asos are cuttings their forecasts, with H&M responding to the current crisis by launching a cost-saving exercise of 177 million dollars. Data from Reuters says the European retail sector has tanked 40 percent on the stock market. “Consumers are under a lot of pressure and are going to reduce some of the discretionary spending, while costs for retailers are going up,” Ciaran Callaghan, head of European equity research at Amundi, Europe’s biggest asset manager, told Reuters. Investors and strategists expect retailers’ margins to be squeezed well into next year as cost pressures are further exacerbated by weakening currencies and collapsing consumer demand. Spending less this Christmas Market research firm Kantar said half of Britons expend to spend less on Christmas this year compared to last year. In its survey 37 percent said they were struggling with their financial situations, a figure that will no doubt impact retailers this Christmas. Kantar also said one in three of those planning to spend less would cut gift budgets for family and close friends by more than 25 pounds per person. “It’s been another tough year for many people and brands need to be careful to get the right tone this Christmas,” said Kantar head of creative excellence Lynne Deason. “We’ve seen a significant jump in the number of consumers who are worried about money and the emphasis for many will likely be on getting back to the true meaning of the festive season, focusing on togetherness, kindness and generosity.” “Brands must be sensitive to this emotional context and the reality of people’s financial positions, particularly in their advertising campaigns. There’s been a clear shift in public sentiment around Christmas ads and brands will need to balance celebration and excess in their content in 2022.” Articles sources: Reuters, Retail Gazette Blog
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Europe's e-commerce set to soar, with fashion a top category

Image: E-commerce via Pexels The European B2C market is expected to grow by 14.96 per year, and forecast to reach 1,010 billion dollars by the end of this year. New data from Research and Markets says online commerce in Europe is an attractive growth story, expected to be worth 1,565 billion dollars by 2026. The pandemic accelerated online shopping across categories, with fashion continuing to drive digital sales, with more consumers buying clothing and accessories. Other items, like food, beauty and healthcare are also growing categories. Research and Markets states the e-commerce market is expected to record strong growth over the next three to four years, offering personalized and improved customer experience is projected to remain a key growth driver for players in the industry. France, Germany and the UK are Europe’s top e-commerce countries Across Europe, Germany is one of the fastest-growing economies and has a dynamic startup-up ecosystem. Moreover, along with the United ingdom and France, Germany is among the top European performers in the e-commerce industry. These countries together generate 60 percent of the total e-commerce revenue in Europe. With the German e-commerce industry expected to record strong growth from the long-term perspective, global e-commerce investors are expected to pump millions of euros into the country. Canadian e-commerce investor Clearco said it would invest 500 million euros into the German market. To date the company has financed over 7,000 companies with an investment topping 3 billion euros. The UK, one of Europe’s leading digital economies, is an attractive market for global players, according to the research. Delivery service giant ParcelHero said companies such as Walmart could consider launching an online marketplace in the UK. By doing so it would become a welcome competitor to Amazon. Other data from ParcelHero shows Amazon attracts 86 percent of the UK’s digital shoppers. This summer Amazon debuted its Amazon Fashion Concept in Europe, after it launched in in the US in 2020. In addition to its expansion in the UK, Amazon is also expected to expand the fashion shopping experience France, Germany, Spain, and Italy. For more information about this report visit https://www.researchandmarkets.com.
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Kanye estimates two billion dollar losses following anti-Semitic rants

Kanye West lost two billion dollars in a single day, he said Thursday, as business partners rushed to dump the rapper in the wake of a series of anti-Semitic outbursts. The music and fashion mogul has seen lucrative commercial tie-ups shelved as companies including Adidas and Gap took fright at comments dubbed hate speech by activists. "I lost two billion dollars in one day. And I'm still alive. This is love speech," West, who is also known as Ye, wrote on Instagram in a post that had been liked over a million times. "I still love you. God still loves you. The money is not who I am. The people is who I am," the post said, naming Emanuel Ari, the CEO of entertainment company Endeavor, who had urged companies to sever ties with the rapper. German sportswear giant Adidas said Tuesday it was ending its partnership with West after his "unacceptable, hateful and dangerous" comments. Adidas also said it would end production of the highly successful "Yeezy" line designed together with West and "stop all payments to Ye and his companies". The move is expected to lop around a quarter of a billion dollars off Adidas's bottom line this year alone. West, who is open about his struggles with bipolar disorder, has long been outspoken, having half-heartedly run for US president in 2020 and then thrown his weight behind Donald Trump. His willingness to go beyond the pale is a double-edged sword for business partners, who have benefited from his high profile and his frequent media appearances, but who risk being tarnished by association. While they weathered previous comments, including when West called slavery a "choice", things began to unravel this month with his appearance at a Paris fashion show wearing a shirt emblazoned "White Lives Matter", a slogan created as a backlash to the Black Lives Matter movement. Days later he was temporarily locked out of Twitter and Instagram for threatening to "Go death con 3 on JEWISH PEOPLE", using a misspelled reference to US military readiness. That sparked alarm, including apparently from his ex-wife Kim Kardashian, who wrote on social media "Hate speech is never OK or excusable," in posts that did not name West. Last weekend a banner was hoisted over a busy Los Angeles freeway that read "Kanye is right about the Jews" and "Honk if you know." Several people were photographed making "Heil Hitler" salutes. Escorted out Adidas's announcement was followed hours later by US company Gap, which said it was taking "immediate steps to remove Yeezy Gap product from our stores" in addition to shutting down YeezyGap.com. Paris-based fashion house Balenciaga also ended ties with the rapper last week, saying it "no longer (has) any relationship nor any plans for future projects related to this artist". One of Hollywood's biggest talent agencies, CAA, said it was dropping West, while film and TV producer MRC said it was shelving an already-finished documentary about the artist. On Wednesday, West was escorted out of the corporate offices of shoe company Skechers in Los Angeles after showing up uninvited with a film crew, the firm said.(AFP)
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